Why Should You Repair Your Credit?

Taking the Next Step

Are you planning on making any of the following investments in the next ten years?:

• An automobile
• College tuition
• A house
• A new business

If you answered yes to any one of these, it is imperative that you address your credit report as soon as possible.

All of the important purchases you make throughout your life are dependent on credit. These purchases are vital in helping you to take the next step in your education, career or personal growth, but very few people have $15,000 in cash to purchase a new car or $20,000 in cash for a college education, let alone $100,000 in cash to buy a home. If it wasn’t for loans, hardly anyone would be able to afford a car, an education or a house and society would stagnate.

The Price of a Loan

Lenders are almost always more than happy to float you the money you need in order to finance your dreams—but for a price. How big that price tag is depends wholly on the terms of your loan, which are factored based on your credit report. Ostensibly, lenders use your credit report in order to reduce their own risks, as lending money to someone with a history of delinquency or sheer inability to repay the loan would amount to losses for them. In reality, however, lenders use your credit report in order to justify outrageous interest rates, restrictive terms and costly penalties for violating those terms.

In order to avoid paying more than what your purchase is worth, it is extremely important to repair your credit before approaching a lender for a loan. Many consumers are surprised when they receive unfavorable terms on their loans or are rejected outright because of negative items that have been inaccurately reported on their credit history or are still in effect from years ago.

Why is My Credit Score So Low?

A range of factors can affect your credit score, including missed payments, late payments, recent rejections for credit and high debt-to-credit ratio. However, here are a few examples where your credit score may be lowered without your knowledge:

• Old negative items that you are unaware of. If you miss a rent check while an undergraduate in college, your credit score will still be affected several years down the road when you want to finance a home


• If you are the victim of identity theft, you may be liable for unauthorized purchases or accounts opened under your name.


• Opening too many store credit cards can be a red flag on your credit report, even if you pay them off in a timely manner.


• Closing inactive credit cards may actually hurt your credit score, as it reduces your credit line to debt ratio.

As you can see, there are many factors that can affect your credit score even if you follow a responsible spending regimen.

How Will Improving My Credit Score Help Me?

A better credit score means

• A better chance at being approved for a loan


• More leverage when negotiating better terms for your loan


• Lower interest rates


• More favorable terms for your loan
• Greater eligibility for amnesty in case of emergency

Essentially, the benefits of negotiating a better loan are two-fold: less money spent on interest and the ability to take out a larger loan. This means greater spending power overall and greater liquidity to keep your out of debt and your credit healthy.

What If It’s Too Late to Fix My Credit?

It is never too late to fix your credit. Consumer Life Mentor specializes in removing negative items from your credit history permanently, making it appear as if they never appeared on your credit report. Our experienced and knowledgeable credit counselors can even reduce or eliminate seemingly irreversible credit mistakes such as foreclosures, bankruptcies and repossessions. Don’t wait any longer to reclaim your credit – sign up now and one of our credit counselors will contact you as soon as possible!